Trump’s Bitcoin made in America push runs into a power problem the tax bill cannot fix
Congress is considering H.R. 9175, the Tax Clarity for Mining and Staking Act, which would let miners and stakers defer tax on newly minted tokens until sale. That would end the current “tax-before-liquidity” problem under IRS guidance, where staking rewards are taxed as ordinary income when received, even if locked and unsellable. The issue is especially harsh in staking-as-a-service models, where clients and validators can owe tax on illiquid rewards and fees. A recent Tax Court ruling upheld taxation when taxpayers gain control of rewards, but it is non-precedential and Congress could still choose a different rule. Industry groups back the bill as a compromise that improves cash flow and reduces offshore migration, though securities, custody, and licensing uncertainty still limit US competitiveness. For Bitcoin mining, tax clarity is secondary to bigger drivers: power cost, land, permitting, grid reliability, and interconnection rules. Companies continue expanding where electricity and infrastructure are best, including Paraguay, Sweden, and other foreign markets.
